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Corporate enterprises must support its business units to adapt to changes that are increasingly dramatic and complex. In response, corporate entities must organize to embed a corporate entrepreneurial orientation (EO) that pervades the actions of its business units to create the radical innovations needed to thrive in these circumstances. We test a multi-level model of corporate EO by conceptualizing its effects on business unit radical innovation and business unit financial performance, moderated by business unit R&D resourcing and business unit absorptive capacity. With data from 2820 business units of 1290 Taiwanese corporations from two separate surveys, we find support for our theoretical expectations and contribute much-needed knowledge of the multi-level effects of EO and the conditions to turn EO into actual innovation activity and profit from it. [ABSTRACT FROM AUTHOR]

Integrating theories of transformational leadership and corporate entrepreneurship, we developed and tested a multilevel model of transformational leadership congruence (among CEOs and divisional managers) mediating the relationship between firm- and division-level corporate entrepreneurship. Analyses of multisource data from 102 senior managers, 357 division managers, and 671 employees across 51 multidivisional Taiwanese electronics firms indicated that the transformational leadership congruence partially mediates the relationship between firm-level corporate entrepreneurship and division-level corporate entrepreneurship. Further, high-performance work system and division-level collective efficacy positively moderate the relationship between transformational leadership congruence and division-level corporate entrepreneurship. Finally, transformational leadership congruence positively influences division-level performance through division-level corporate entrepreneurship. Taken together, we demonstrate that transformational leadership congruence between a CEO and division-level managers has important implications for determining the percolation of corporate entrepreneurship to divisions in a firm and division performance. [ABSTRACT FROM AUTHOR]